How Central Planners Sow Seeds of Economic Ruin

When the visible hand of central planners is forced upon an economy through edicts and diktats, money is no longer directed to where it is most appreciated. Rather, it is squandered on things that have little economic merit. And abundance is subtracted from the economy.

For profits to be produced in a market economy a seller must provide products or services that people want at prices they find favorable. Businesses profit to the extent that they serve the public and fulfill their needs and desires.

Central planners may say they favor growing economies and prosperity. California Governor Gavin Newsom, a big government statist, supports economic growth. He just thinks big government provides the best means and methods for attaining it.

Perhaps Newsom and his ilk should attempt to better understand the conditions that actually make prosperity possible.

Economies cannot grow when they are choked by the weeds of regulations and confiscatory taxes. They cannot grow within an environment where private property rights are not respected and protected by the rule of law. So, too, they cannot effectively function when printing press money is sowed into wasteful activities by the heavy hand of central planners.

The fact is, any prosperity you have enjoyed is not because of government. It’s in spite of it.

The visible hand of government sows seeds of economic ruin.

The central planners have harvested a controlled economy, with a stagnant, immovable assemblage of obstructions that restrict the potential for development, productivity, and ingenuity. Whatever creativity is attempted is quickly choked out because there is no soil in which it is allowed to grow and blossom.

If the politicians really wanted to do something to improve the economy they would stop being so clever. They would cut off the government directed stimulus and allow capital to freely flow to the most productive undertakings. They would reduce government regulations, cut taxes, and let the most productive citizens flourish and create real jobs.

Alas, no one in Washington has the wisdom, restraint, humility, and political sacrifice, to let this happen. Thus the economic harvest will be meagre this year. And next year too.

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